Saturday , 22 October 2016

How much does the typical American household make?

How much does the typical American family make? This question is probably one of the most central in figuring out how we can go about fixing our current economic malaise. In this article we break down the U.S. household income numbers. Words: 464

So says an article* posted on

Lorimer Wilson, editor of (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. (This paragraph must be included in any article re-posting to avoid copyright infringement.)

The article goes on to say, in part:

Median Household Income: $46,326; Median Dual-earner Household Income: $67,348

The median household income in the United States is $46,326….[while] dual earner households have a higher median income at $67,348. To highlight the massive discrepancy I’ve put together a chart showing the household income distribution:

U.S. Income Distribution

17.8% of Households Make More Than $118,200; Only 2.7% Make More than $200,000

As you can see from the above chart, only 17.8% of all U.S. households make more than $118,200 a year. Only 2.67% make more than $200,000. The fact that only 34% make more than $65,000 is astounding given how expensive other cost of living items have gotten over the past decade. That is why the middle class is feeling squeezed from all different sides.

0.1% of Household Incomes Exceed $1,500,000

What is even more fascinating, is how even amongst the super wealthy income is not distributed evenly. There are approximately 146,000 (0.1%) households with incomes exceeding $1,500,000 a year. Even at that, the top 0.01% of households had incomes of $5,500,000 and accounted for 11,000 households. The 400 highest tax payers in the nation brought in a stunning $87,000,000 a year. Now that is wealth.

55 Million Households Living on $46,000/yr. – or Less

For us mere mortals, it is important again to focus on that chart. $46,000 does not go a long way. In a recent Census report there are 110,000,000 households in the United States. What this data tells us is that 55,000,000 households are living on $46,000 or less a year. Let us assume this is a married couple with 1 child. Let us run the numbers:

Texas Income Household

I ran the numbers for a state with no state income tax, Texas. A family at this level is only bringing in $3,215 a month. The national median home price peaked around $200,000. So let us assume this family purchased the median home:

  • 5% down payment: $10,000
  • Mortgage 30-year fixed (6.5%): $1,200
  • Taxes and Insurance: $333
  • Total PITI: $1,533

Right off the bat, this family is spending 47% of their net pay on a median priced home…The bottom line is [that] the average American family is being squeezed from every angle.


What we need is a focus on jobs and our economy, not bailing out banks. That defeats the entire purpose. The average American family is struggling getting by and when they hear about these billion dollar handouts, they can’t help but to feel left out.


Editor’s Note: The above article has been has edited ([ ]), abridged, and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

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